{"id":46408,"date":"2025-06-27T21:40:26","date_gmt":"2025-06-27T16:10:26","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=46408"},"modified":"2025-06-27T21:40:52","modified_gmt":"2025-06-27T16:10:52","slug":"msme-day-2025-micro-small-medium-enterprises","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/27-06-2025\/msme-day-2025-micro-small-medium-enterprises","title":{"rendered":"Micro, Small and Medium Enterprises (MSMEs) Day 2025"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>World Micro-, Small- and Medium-sized Enterprises (MSMEs) Day<\/strong> is celebrated annually on June 27th with the theme \u201c<strong>Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.\u201d<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"dab92a\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"436\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/Micro-Small-and-Medium-Enterprises-MSMEs-Day-2025.webp\" alt=\"Micro Small and Medium Enterprises-MSMEs Day 2025\" class=\"not-transparent wp-image-46414\" style=\"--dominant-color: #dab92a; width:306px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/Micro-Small-and-Medium-Enterprises-MSMEs-Day-2025.webp 500w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/Micro-Small-and-Medium-Enterprises-MSMEs-Day-2025-300x262.webp 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of MSMEs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Globally, MSMEs represent the <strong>most dominant segment of the business ecosystem, <\/strong>accounting for nearly<strong> 90% of enterprises and over 50% of total employment.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>In India, MSMEs are contributing around 30% to the GDP and over 45% to the country&#8217;s exports.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>MSMEs are the <strong>second-largest employer in India after agriculture.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img data-dominant-color=\"e9e8ec\" data-has-transparency=\"false\" style=\"--dominant-color: #e9e8ec;\" loading=\"lazy\" decoding=\"async\" width=\"495\" height=\"304\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/share-of-msme-gross-value-added-in-india-gdp.png\" alt=\"share of msme gross value added in india-gdp\" class=\"not-transparent wp-image-46410\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/share-of-msme-gross-value-added-in-india-gdp.png 495w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/share-of-msme-gross-value-added-in-india-gdp-300x184.png 300w\" sizes=\"auto, (max-width: 495px) 100vw, 495px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Exports from MSMEs <\/strong>have seen substantial growth, rising from \u20b93.95 lakh crore in 2020-21 to \u20b912.39 lakh crore in 2024-25.\u00a0<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e4ecf3\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"464\" height=\"395\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/growth-of-msme-exports.png\" alt=\"growth of msme exports\" class=\"not-transparent wp-image-46409\" style=\"--dominant-color: #e4ecf3; width:410px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/growth-of-msme-exports.png 464w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/06\/growth-of-msme-exports-300x255.png 300w\" sizes=\"auto, (max-width: 464px) 100vw, 464px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges Faced by the MSMEs in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited Access to Credit: <\/strong>Most MSMEs struggle to get loans due to lack of collateral and formal credit history.<\/li>\n\n\n\n<li><strong>Outdated Technology: <\/strong>Many MSMEs use obsolete technology due to high costs and limited awareness.<\/li>\n\n\n\n<li><strong>Regulatory Burden:<\/strong> Complex compliance with tax laws, labour regulations, and licenses increases operational difficulty.<\/li>\n\n\n\n<li><strong>Delayed Payments: <\/strong>Payments from large companies and government buyers are often delayed, affecting MSMEs&#8217; cash flow.<\/li>\n\n\n\n<li><strong>Low Productivity:<\/strong> Many MSMEs have low productivity due to informal operations and lack of modern practices.<\/li>\n\n\n\n<li><strong>Skilled Labour Shortage:<\/strong> There is a lack of access to skilled and trained manpower in the sector.<\/li>\n\n\n\n<li><strong>Limited Market Access:<\/strong> MSMEs struggle with branding, marketing, and reaching wider domestic and global markets.<\/li>\n\n\n\n<li><strong>Informality and Lack of Data:<\/strong> A large number of MSMEs remain unregistered, making them ineligible for formal support.<\/li>\n\n\n\n<li><strong>Vulnerability to External Shocks:<\/strong> MSMEs are highly susceptible to disruptions like COVID-19, inflation, and global slowdown.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Initiatives to Support MSMEs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PM Vishwakarma: <\/strong>Launched in 2023, it is a central sector scheme for 2023-24 to 2027-28.\n<ul class=\"wp-block-list\">\n<li>It aims to uplift traditional artisans and craftspeople by enhancing product quality and connecting them to wider markets.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Udyam Registration Portal: <\/strong>It was launched in 2020, offers a free, paperless, and self-declared registration process for MSMEs.<\/li>\n\n\n\n<li><strong>Prime Minister\u2019s Employment Generation Programme (PMEGP): <\/strong>PMEGP is a credit-linked subsidy scheme that supports self-employment by helping set up micro-enterprises in the non-farm sector.\u00a0<\/li>\n\n\n\n<li><strong>Scheme of Fund for Regeneration of Traditional Industries (SFURTI): <\/strong>SFURTI was launched in 2005-06 to organise traditional artisans into clusters for improved competitiveness, product development and sustainable income generation.<\/li>\n\n\n\n<li><strong>Public Procurement Policy for Micro and Small Enterprises: <\/strong>It was notified in 2012 to ensure market access for Micro and Small Enterprises.\n<ul class=\"wp-block-list\">\n<li>It mandates 25% annual procurement from MSEs by Central Ministries, including 4% from MSEs owned by SC\/ST and 3% from MSEs owned by Women entrepreneurs.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>MSME Hackathon 4.0 (2024): <\/strong>Supports 500 young entrepreneurs with funding up to Rs. 15 lakh each for innovation and incubation.<\/li>\n\n\n\n<li><strong>MSME-TEAM Scheme (2024): <\/strong>A trade enablement initiative with an outlay of Rs. 277.35 crore, supporting 5 lakh MSEs (including 2.5 lakh women-led) in digital onboarding, cataloguing, logistics and packaging.<\/li>\n\n\n\n<li><strong>Khadi and Village Industries: <\/strong>The Government is promoting the Khadi and Village Industries (KVI) sector through the Khadi and Gramodyog Vikas Yojana (KGVY), a Central Sector Scheme with no state component.\u00a0<\/li>\n\n\n\n<li><strong>International Cooperation Scheme:<\/strong> Supports MSMEs in entering global markets by facilitating participation in international fairs, exhibitions and knowledge-sharing events on a reimbursement basis.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>MSMEs are revolutionising India\u2019s growth story by <strong>driving innovation, generating employment, and empowering local communities.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>With strong policy support, digital tools, and access to new markets,<\/strong> these enterprises are becoming engines of sustainable and inclusive development.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/ddnews.gov.in\/en\/president-droupadi-murmu-to-lead-msme-day-2025-celebrations-in-new-delhi\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>DD<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">World Micro-, Small- and Medium-sized Enterprises (MSMEs) Day is celebrated annually on June 27th with the theme \u201cEnhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.\u201d<\/li>\n<p><\/p>\n<h3><strong>Significance of MSMEs<\/strong><\/h3>\n<li class=\"ms-5\">Globally, MSMEs represent the most dominant segment of the business ecosystem, accounting for nearly 90% of enterprises and over 50% of total employment.\u00a0<\/li>\n<li class=\"ms-5\">In India, MSMEs are contributing around 30% to the GDP and over 45% to the country&#8217;s exports.\u00a0<\/li>\n<li class=\"ms-5\">MSMEs are the second-largest employer in India after agriculture.<\/li>\n<li class=\"ms-5\">Exports from MSMEs have seen substantial growth, rising from \u20b93.95 lakh crore in 2020-21 to \u20b912.39 lakh crore in 2024-25.\u00a0<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/27-06-2025\/msme-day-2025-micro-small-medium-enterprises\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-46408","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=46408"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46408\/revisions"}],"predecessor-version":[{"id":46442,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/46408\/revisions\/46442"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=46408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=46408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=46408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}